dtc agreement between malta and ireland

8/3/2019 DTC agreement between Malta and Ireland

1/42

CONVENTION BETWEEN

IRELAND

AND

MALTA

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

The Government of Ireland and the Government of Malta, desiring

to conclude a Convention for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on income, have

agreed as follows:


2/42

2

Article 1

PERSONS COVERED

This Convention shall apply to persons who are residents of one or both

of the Contracting States.


3/42

3

Article 2

TAXES COVERED

1. This Convention shall apply to taxes on income imposed by a

Contracting State, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on

total income, or on elements of income, including taxes on gains from the

alienation of movable or immovable property.

3. The existing taxes to which this Convention shall apply are:

(a) in the case of Ireland:

(i) the income tax;

(ii) the corporation tax;

(iii) the capital gains tax;(hereinafter referred to as "Irish tax");

(b) in the case of Malta:

the income tax;

(hereinafter referred to as "Malta tax").

4. The Convention shall apply also to any identical or substantially

similar taxes which are imposed after the date of signature of the

Convention in addition to, or in place of, the existing taxes. The

competent authorities of the Contracting States shall notify each other of

any significant changes which have been made in their respective taxation

laws.


4/42

4

Article 3

GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise

requires:

(a) the term Ireland includes any area outside the territorial

waters of Ireland which, in accordance with international law, has

been or may hereafter be designated under the laws of Ireland

concerning the Continental Shelf, as an area within which the

rights of Ireland with respect to the sea-bed and sub-soil and theirnatural resources may be exercised;

(b) the term "Malta" means the Republic of Malta and, when

used in a geographical sense, means the Island of Malta, the Island

of Gozo and the other islands of the Maltese archipelago including

the territorial waters thereof, as well as any area of the sea-bed, its

sub-soil and the superjacent water column adjacent to the territorial

waters, wherein Malta exercises sovereign rights, jurisdiction, orcontrol in accordance with international law and its national law,

including its legislation relating to the exploration of the

continental shelf and exploitation of its natural resources;

(c) the terms "a Contracting State" and "the other Contracting

State" mean Ireland or Malta, as the context requires;

(d) the term "person" includes an individual, a company and any

other body of persons;

(e) the term "company" means any body corporate or any entity

that is treated as a body corporate for tax purposes;

(f) the terms "enterprise of a Contracting State" and "enterprise

of the other Contracting State" mean respectively an enterprise

carried on by a resident of a Contracting State and an enterprise

carried on by a resident of the other Contracting State;


5/42

5

(g) the term "international traffic" means any transport by a ship

or aircraft operated by an enterprise of a Contracting State, except

when the ship or aircraft is operated solely between places in the

other Contracting State;

(h) the term "competent authority" means:

(i) in Ireland: the Revenue Commissioners or their

authorised representative;

(ii) in Malta: the Minister responsible for finance or his

authorised representative;

(i) the term " national" means:

(i) in relation to Ireland, any citizen of Ireland and any

legal person, partnership or association deriving its status as

such from the laws in force in Ireland;

(ii) in relation to Malta, any individual possessing thenationality of Malta and any legal person, partnership or

association deriving its status as such from the laws in force

in Malta.

2. As regards the application of the Convention at any time by a

Contracting State, any term not defined therein shall, unless the context

otherwise requires, have the meaning that it has at that time under the law

of that State for the purposes of the taxes to which the Convention

applies, any meaning under the applicable tax laws of that State

prevailing over a meaning given to the term under other laws of that

State.


6/42

6

Article 4

RESIDENT

1. For the purposes of this Convention, the term "resident of a

Contracting State" means any person who, under the laws of that State, is

liable to tax therein by reason of his domicile, residence, place of

management or any other criterion of a similar nature. This term,

however, does not include any person who is liable to tax in that State in

respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is aresident of both Contracting States, then his status shall be determined as

follows:

(a) he shall be deemed to be a resident only of the State in which

he has a permanent home available to him; if he has a permanent

home available to him in both States, he shall be deemed to be a

resident only of the State with which his personal and economic

relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home available

to him in either State, he shall be deemed to be a resident only of

the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of

them, he shall be deemed to be a resident only of the State of which

he is a national;

(d) if he is a national of both States or of neither of them, the

competent authorities of the Contracting States shall settle the

question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other

than an individual is a resident of both Contracting States, then it shall be


7/42

7

deemed to be a resident only of the State in which its place of effective

management is situated.


8/42

8

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent

establishment" means a fixed place of business through which the

business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially:

(a) a place of management;

(b) a branch;(c) an office;

(d) a factory;

(e) a workshop; and

(f) a mine, an oil or gas well, a quarry or any other place of

extraction of natural resources.

3. A person carrying on activities offshore in a Contracting State in

connection with the exploration or exploitation of the sea-bed and sub-soil and their natural resources situated in that Contracting State shall be

deemed to be carrying on a business through a permanent establishment

in that Contracting State.

4. A building site, a construction, assembly or installation project or

supervisory activities in connection therewith, constitutes a permanent

establishment only if it lasts more than six months.

5. Notwithstanding the preceding provisions of this Article, the term

"permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display

or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of storage,

display or delivery;


9/42

9

(c) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of processing by

another enterprise;

(d) the maintenance of a fixed place of business solely for the

purpose of purchasing goods or merchandise, or of collecting

information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the

purpose of carrying on, for the enterprise, any other activity of a

preparatory or auxiliary character;

(f) the maintenance of a fixed place of business solely for any

combination of activities mentioned in sub-paragraphs (a) to (e),

provided that the overall activity of the fixed place of business

resulting from this combination is of a preparatory or auxiliary

character.

6. Notwithstanding the provisions of paragraphs 1 and 2, where a

person - other than an agent of an independent status to whom paragraph7 applies - is acting on behalf of an enterprise and has, and habitually

exercises, in a Contracting State an authority to conclude contracts in the

name of the enterprise, that enterprise shall be deemed to have a

permanent establishment in that State in respect of any activities which

that person undertakes for the enterprise, unless the activities of such

person are limited to those mentioned in paragraph 5 which, if exercised

through a fixed place of business, would not make this fixed place of

business a permanent establishment under the provisions of that

paragraph.

7. An enterprise shall not be deemed to have a permanent

establishment in a Contracting State merely because it carries on business

in that State through a broker, general commission agent or any other

agent of an independent status, provided that such persons are acting in

the ordinary course of their business.


10/42

10

8. The fact that a company which is a resident of a Contracting State

controls or is controlled by a company which is a resident of the other

Contracting State, or which carries on business in that other State

(whether through a permanent establishment or otherwise), shall not of

itself constitute either company a permanent establishment of the other.


11/42

11

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from

immovable property (including income from agriculture or forestry)

situated in the other Contracting State may be taxed in that other State.

2. The term "immovable property" shall have the meaning which it

has under the law of the Contracting State in which the property in

question is situated. The term shall in any case include property

accessory to immovable property, livestock and equipment used inagriculture and forestry, rights to which the provisions of general law

respecting landed property apply, usufruct of immovable property and

rights to variable or fixed payments as consideration for the working of,

or the right to work, mineral deposits, sources and other natural

resources; ships, boats and aircraft shall not be regarded as immovable

property.

3. The provisions of paragraph 1 shall apply to income derived fromthe direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income

from immovable property of an enterprise and to income from immovable

property used for the performance of independent personal services.


12/42

12

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable

only in that State unless the enterprise carries on business in the other

Contracting State through a permanent establishment situated therein. If

the enterprise carries on business as aforesaid, the profits of the enterprise

may be taxed in the other State but only so much of them as is attributable

to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of aContracting State carries on business in the other Contracting State

through a permanent establishment situated therein, there shall in each

Contracting State be attributed to that permanent establishment the profits

which it might be expected to make if it were a distinct and separate

enterprise engaged in the same or similar activities under the same or

similar conditions and dealing wholly independently with the enterprise

of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall

be allowed as deductions expenses which are incurred for the purposes of

the permanent establishment, including executive and general

administrative expenses so incurred, whether in the Contracting State in

which the permanent establishment is situated or elsewhere.

4. Insofar as it has been customary in a Contracting State to determine

the profits to be attributed to a permanent establishment on the basis of an

apportionment of the total profits of the enterprise to its various parts,

nothing in paragraph 2 shall preclude that Contracting State from

determining the profits to be taxed by such an apportionment as may be

customary; the method of apportionment adopted shall, however, be such

that the result shall be in accordance with the principles contained in this

Article.


13/42

13

5. No profits shall be attributed to a permanent establishment by

reason of the mere purchase by that permanent establishment of goods or

merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be

attributed to the permanent establishment shall be determined by the same

method year by year unless there is good and sufficient reason to the

contrary.

7. Where profits include items of income or gains which are dealt

with separately in other Articles of this Convention, then the provisions

of those Articles shall not be affected by the provisions of this Article.


14/42

14

Article 8

SHIPPING AND AIR TRANSPORT1. Profits of an enterprise of a Contracting State from the operation of

ships or aircraft in international traffic shall be taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the

participation in a pool, a joint business or an international operating

agency.


15/42

15

Article 9

ASSOCIATED ENTERPRISES

1. Where

(a) an enterprise of a Contracting State participates directly or

indirectly in the management, control or capital of an enterprise of

the other Contracting State, or

(b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a ContractingState and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two

enterprises in their commercial or financial relations which differ from

those which would be made between independent enterprises, then any

profits which would, but for those conditions, have accrued to one of the

enterprises, but, by reason of those conditions, have not so accrued, may

be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of

that State - and taxes accordingly - profits on which an enterprise of the

other Contracting State has been charged to tax in that other State and the

profits so included are profits which would have accrued to the enterprise

of the first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an appropriate

adjustment to the amount of the tax charged therein on those profits. In

determining such adjustment, due regard shall be had to the other

provisions of this Convention and the competent authorities of the

Contracting States shall if necessary consult each other.


16/42

16

Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting

State to a resident of the other Contracting State may be taxed in that

other State.

2. However, such dividends may also be taxed in the Contracting

State of which the company paying the dividends is a resident and

according to the laws of that State, but:

(a) where the dividends are paid by a company which is a

resident of Ireland to a resident of Malta who is the beneficial

owner thereof, the Irish tax so charged shall not exceed:

(i) 5 per cent of the gross amount of the dividends if the

beneficial owner is a company which holds directly at least

10 per cent of the voting power of the company paying the

dividends;

(ii) 15 per cent of the gross amount of the dividends in all

other cases;

(b) where the dividends are paid by a company which is a

resident of Malta to a resident of Ireland who is the beneficial

owner thereof, Malta tax on the gross amount of the dividend shall

not exceed that chargeable on the profits out of which the

dividends are paid.

This paragraph shall not affect the taxation of the company in

respect of the profits out of which the dividends are paid.

3. The term "dividends" as used in this Article means income from

shares, or other rights, not being debt-claims, participating in profits, as

well as income from other corporate rights assimilated to income from

shares by the taxation laws of the State of which the company making the


17/42

17

distribution is a resident and also includes any other item which, under

the laws of the Contracting State of which the company paying the

dividend is a resident, is treated as a dividend or distribution of a

company.

4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the dividends, being a resident of a Contracting State,

carries on business in the other Contracting State of which the company

paying the dividends is a resident, through a permanent establishment

situated therein, or performs in that other State independent personal

services from a fixed base situated therein, and the holding in respect of

which the dividends are paid is effectively connected with such

permanent establishment or fixed base. In such case the provisions ofArticle 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State

derives profits or income from the other Contracting State, that other

State may not impose any tax on the dividends paid by the company,

except insofar as such dividends are paid to a resident of that other State

or insofar as the holding in respect of which the dividends are paid is

effectively connected with a permanent establishment or a fixed basesituated in that other State, nor subject the company's undistributed

profits to a tax on the company's undistributed profits, even if the

dividends paid or the undistributed profits consist wholly or partly of

profits or income arising in such other State.


18/42

18

Article 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the

other Contracting State shall be taxable only in that other State if such

resident is the beneficial owner of the interest.

2. The term "interest", as used in this Article means income from

debt-claims of every kind, whether or not secured by mortgage and

whether or not carrying a right to participate in the debtor's profits, and in

particular, income from government securities and income from bonds ordebentures, including premiums and prizes attaching to such securities,

bonds or debentures. The term interest shall not include any item

which is treated as a distribution under the provisions of Article 10.

Penalty charges for late payment shall not be regarded as interest for the

purpose of this Article.

3. The provisions of paragraph 1 shall not apply if the beneficial

owner of the interest, being a resident of a Contracting State, carries onbusiness in the other Contracting State in which the interest arises,

through a permanent establishment situated therein, or performs in that

other State independent personal services from a fixed base situated

therein, and the debt-claim in respect of which the interest is paid is

effectively connected with such permanent establishment or fixed base.

In such case the provisions of Article 7 or Article 14, as the case may be,

shall apply.

4. Where, by reason of a special relationship between the payer and

the beneficial owner or between both of them and some other person, the

amount of the interest, having regard to the debt-claim for which it is

paid, exceeds the amount which would have been agreed upon by the

payer and the beneficial owner in the absence of such relationship, the

provisions of this Article shall apply only to the last-mentioned amount.

In such case, the excess part of the payments shall remain taxable

according to the laws of each Contracting State, due regard being had to

the other provisions of this Convention.


19/42

19

Article 12

ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the

other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State

in which they arise and according to the laws of that State, but if the

beneficial owner of the royalties is a resident of the other Contracting

State, the tax so charged shall not exceed 5 per cent of the gross amount

of the royalties.

3. The term "royalties" as used in this Article means payments of any

kind received as a consideration for the use of, or the right to use, any

copyright of literary, artistic or scientific work including cinematograph

films, any patent, trade mark, design or model, plan, secret formula or

process, or for information concerning industrial, commercial or scientific

experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the royalties, being a resident of a Contracting State,

carries on business in the other Contracting State in which the royalties

arise, through a permanent establishment situated therein, or performs in

that other State independent personal services from a fixed base situated

therein, and the right or property in respect of which the royalties are paid

is effectively connected with such permanent establishment or fixed base.

In such case the provisions of Article 7 or Article 14, as the case may be,

shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the

payer is a resident of that State. Where, however, the person paying the

royalties, whether he is a resident of a Contracting State or not, has in a

Contracting State a permanent establishment or a fixed base in connection

with which the liability to pay the royalties was incurred, and such

royalties are borne by such permanent establishment or fixed base, then


20/42

20

such royalties shall be deemed to arise in the State in which the

permanent establishment or fixed base is situated.

6. Where, by reason of a special relationship between the payer and

the beneficial owner or between both of them and some other person, the

amount of the royalties, having regard to the use, right or information for

which they are paid, exceeds the amount which would have been agreed

upon by the payer and the beneficial owner in the absence of such

relationship, the provisions of this Article shall apply only to the last-

mentioned amount. In such case, the excess part of the payments shall

remain taxable according to the laws of each Contracting State, due

regard being had to the other provisions of this Convention.


21/42

21

Article 13

GAINS FROM THE ALIENATION OF PROPERTY

1. Gains derived by a resident of a Contracting State from the

alienation of immovable property referred to in Article 6 and situated in

the other Contracting State may be taxed in that other State.

2. Gains derived by a resident of a Contracting State from the

alienation of shares or other corporate rights in a company deriving their

value or the greater part of their value directly or indirectly from

immovable property situated in the other Contracting State may be taxedin that other State. In this paragraph the term shares does not include

shares quoted or listed on a recognisedStock Exchange.

3. Gains from the alienation of movable property forming part of the

business property of a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State or of movable

property pertaining to a fixed base available to a resident of a Contracting

State in the other Contracting State for the purpose of performingindependent personal services, including such gains from the alienation of

such a permanent establishment (alone or with the whole enterprise) or of

such fixed base, may be taxed in that other State.

4. Gains derived by an enterprise of a Contracting State from the

alienation of ships or aircraft operated in international traffic, or from

movable property pertaining to the operation of such ships or aircraft,

shall be taxable only in that State.

5. Gains from the alienation of any property other than that referred to

in the preceding paragraphs of this Article shall be taxable only in the

Contracting State of which the alienator is a resident.

6. The provisions of paragraph 5 shall not affect the right of a

Contracting State to levy, according to its law, a tax on gains from the

alienation of any property derived by an individual who is a resident of

the other ContractingState and has been a resident of the first-mentioned


22/42

22

State at any time during the three years immediately preceding the

alienation of the property.


23/42

23

Article 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of

professional services or other activities of an independent character shall

be taxable only in that State. However, such income may be taxed in the

other Contracting State in the following circumstances:

(a) if he has a fixed base regularly available to him in the other

Contracting State for the purpose of performing his activities; in

that case, only so much of the income as is attributable to that fixedbase may be taxed in that other Contracting State; or

(b) if his stay in the other Contracting State is for a period or

periods amounting to or exceeding in the aggregate 183 days in any

twelve-month period commencing or ending in the fiscal year

concerned; in that case, only so much of the income as is derived

from the activity exercised in the other Contracting State may be

taxed in that other State.

2. The term "professional services" includes especially independent

scientific, literary, artistic, educational or teaching activities as well as the

independent activities of physicians, lawyers, engineers, architects,

dentists and accountants.


24/42

24

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages

and other similar remuneration derived by a resident of a Contracting

State in respect of an employment shall be taxable only in that State

unless the employment is exercised in the other Contracting State. If the

employment is so exercised, such remuneration as is derived therefrom

may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remunerationderived by a resident of a Contracting State in respect of an employment

exercised in the other Contracting State shall be taxable only in the first-

mentioned State if:

(a) the recipient is present in the other State for a period or

periods not exceeding in the aggregate 183 days in any twelve-

month period commencing or ending in the fiscal year concerned,

and

(b) the remuneration is paid by, or on behalf of, an employer

who is not a resident of the other State, and

(c) the remuneration is not borne by a permanent establishment

or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article,

remuneration derived in respect of an employment exercised aboard a

ship or aircraft operated in international traffic by an enterprise of a

Contracting State may be taxed in that State.


25/42

25

Article 16

DIRECTORS' FEES

Directors' fees and other similar payments derived by a resident of

a Contracting State in his capacity as a member of the board of directors

of a company which is a resident of the other Contracting State may be

taxed in that other State.


26/42

26

Article 17

ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, income

derived by a resident of a Contracting State as an entertainer, such as a

theatre, motion picture, radio or television artiste, or a musician, or as a

sportsman, from his personal activities as such exercised in the other

Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an

entertainer or a sportsman in his capacity as such accrues not to theentertainer or sportsman himself but to another person, that income may,

notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the

Contracting State in which the activities of the entertainer or sportsman

are exercised.


27/42

27

Article 18

PENSIONS, ANNUITIES AND SIMILAR PAYMENTS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and

other similar remuneration paid in consideration of past employment, or

any annuity paid, to an individual who is a resident of a Contracting State

shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and

other payments made under the social security legislation of a

Contracting State shall be taxable only in that State.

3. The term annuity means a stated sum payable periodically at

stated times during life or during a specified or ascertainable period of

time under an obligation to make the payments in return for adequate and

full consideration in money or moneys worth.


28/42

28

Article 19

GOVERNMENT SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a

pension, paid by a Contracting State to an individual in respect of

services rendered to that State shall be taxable only in that State.

(b) However, such salaries, wages and other similar

remuneration shall be taxable only in the other Contracting State if

the services are rendered in that State and the individual is a resident

of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the

purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a

Contracting State to an individual in respect of services rendered tothat State shall be taxable only in that State.

(b) However, such pension shall be taxable only in the other

Contracting State if the individual is a resident of, and a national

of, that State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries,

wages and other similar remuneration, and to pensions, in respect of

services rendered in connection with a business carried on by a

Contracting State.


29/42

29

Article 20

STUDENTS

Payments which a student or business apprentice who is or was

immediately before visiting a Contracting State a resident of the other

Contracting State and who is present in the first-mentioned State solely

for the purpose of his education or training receives for the purpose of his

maintenance, education or training shall not be taxed in that State,

provided that such payments arise from sources outside that State.


30/42

30

Article 21

OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever

arising, not dealt with in the foregoing Articles of this Convention shall

be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than

income from immovable property as defined in paragraph 2 of Article 6,

if the recipient of such income, being a resident of a Contracting State,

carries on business in the other Contracting State through a permanentestablishment situated therein, or performs in that other State independent

personal services from a fixed base situated therein, and the right or

property in respect of which the income is paid is effectively connected

with such permanent establishment or fixed base. In such case, the

provisions of Article 7 or Article 14, as the case may be, shall apply.


31/42

31

Article 22

ELIMINATION OF DOUBLE TAXATION

1. Subject to the provisions of the laws of Ireland regarding the

allowance as a credit against Irish tax of tax payable in a territory outside

Ireland (which shall not affect the general principle hereof) -

(a) Malta tax paid under the laws of Malta and in accordance

with this Convention, whether directly or by deduction, on profits,

income or gains from sources within Malta (excluding in the case

of a dividend tax payable in respect of the profits out of which thedividend is paid) shall be allowed as a credit against any Irish tax

computed by reference to the same profits, income or gains by

reference to which Malta tax is computed;

(b) in the case of a dividend paid by a company which is a

resident of Malta to a company which is a resident of Ireland and

which controls directly or indirectly 10 per cent or more of the

voting power in the company paying the dividend, the credit shalltake into account (in addition to any Malta tax creditable under the

provisions of subparagraph (a) of this paragraph) Malta tax payable

in respect of the profits out of which such dividend is paid.

2. Subject to the provisions of the laws of Malta regarding the

allowance as a credit against Malta tax in respect of foreign tax (which

shall not affect the general principle hereof) -

(a) where, in accordance with the provisions of this Convention,

there is included in a Malta assessment income from sources within

Ireland, the Irish tax paid on such income (excluding in the case of

a dividend tax payable in respect of the profits out of which the

dividendis paid)shall be allowed as a credit against the Malta taxpayable thereon;

(b) where a company which is a resident of Ireland pays a

dividend to a company resident in Malta which controls directly or


32/42

32

indirectly at least 10 per cent of the voting power in the first-

mentioned company, the credit shall take into account (in addition

to any Irish tax for which credit may be allowed under

subparagraph (a) of this paragraph) the Irish tax borne in respect of

the profits out of which such dividend is paid.

3. For the purposes of paragraphs 1 and 2 of this Article profits,

income or gains of a resident of a Contracting State which may be taxed

in the other Contracting State in accordance with this Convention shall be

deemed to arise from sources in that other State.

4. Where in accordance with any provisions of this Conventionincome derived by a resident of a Contracting State is exempt from tax in

that State, such State may nevertheless, in calculating the amount of tax

on the remaining income of such resident, take into account the exempted

income.

5. Where, under any provision of this Convention, income or gains is

or are wholly or partly relieved from tax in a Contracting State and, under

the laws in force in the other Contracting State, an individual, in respectof the said income or gains, is subject to tax by reference to the amount

thereof which is remitted to or received in that other State, and not by

reference to the full amount thereof, then the relief to be allowed under

this Convention in the first-mentioned State shall apply only to so much

of the income or gains as is remitted to or received in that other State.


33/42

33

Article 23

NON-DISCRIMINATION1. Nationals of a Contracting State shall not be subjected in the other

Contracting State to any taxation or any requirement connected therewith

which is other or more burdensome than the taxation and connected

requirements to which nationals of that other State in the same

circumstances, in particular with respect to residence, are or may be

subjected. This provision shall, notwithstanding the provisions of Article

1, also apply to persons who are not residents of one or both of the

Contracting States.

2. The taxation on a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State shall not be less

favourably levied in that other State than the taxation levied on

enterprises of that other State carrying on the same activities. This

provision shall not be construed as obliging a Contracting State to grant

to residents of the other Contracting State any personal allowances,

reliefs and reductions for tax purposes on account of civil status or familyresponsibilities which it grants to its own residents.

3. Except where the provisions of paragraph 1 of Article 9, paragraph

4 of Article 11, or paragraph 6 of Article 12 apply, interest (other than

interest that has been treated as a dividend under Article 10), royalties and

other disbursements paid by an enterprise of a Contracting State to a

resident of the other Contracting State shall, for the purpose of

determining the taxable profits of such enterprise, be deductible under the

same conditions as if they had been paid to a resident of the first-

mentioned State.

4. Enterprises of a Contracting State, the capital of which is wholly or

partly owned or controlled, directly or indirectly, by one or more

residents of the other Contracting State, shall not be subjected in the first-

mentioned State to any taxation or any requirement connected therewith

which is other or more burdensome than the taxation and connected


34/42

34

requirements to which other similar enterprises of the first-mentioned

State are or may be subjected.


35/42

35

Article 24

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the

Contracting States result or will result for him in taxation not in

accordance with the provisions of this Convention, he may, irrespective

of the remedies provided by the domestic law of those States, present his

case to the competent authority of the Contracting State of which he is a

resident or, if his case comes under paragraph 1 of Article 23, to that of

the Contracting State of which he is a national. The case must be

presented within three years from the first notification of the actionresulting in taxation not in accordance with the provisions of the

Convention.

2. The competent authority shall endeavour, if the objection appears

to it to be justified and if it is not itself able to arrive at a satisfactory

solution, to resolve the case by mutual agreement with the competent

authority of the other Contracting State, with a view to the avoidance of

taxation which is not in accordance with the Convention. Any agreementreached shall be implemented notwithstanding any time limits in the

domestic law of the Contracting States.

3. The competent authorities of the Contracting States shall

endeavour to resolve by mutual agreement any difficulties or doubts

arising as to the interpretation or application of the Convention. They

may also consult together for the elimination of double taxation in cases

not provided for in the Convention.

4. The competent authorities of the Contracting States may

communicate with each other directly for the purpose of reaching an

agreement in the sense of the preceding paragraphs.


36/42

36

Article 25

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange

such information as is foreseeably relevantfor carrying out the provisionsof this Convention or to the administration or enforcementof thedomestic laws concerning taxes of every kind and description imposed on

behalf of the Contracting States, or of their political subdivisions or local

authorities, insofar as the taxation thereunder is not contrary to the

Convention. The exchange of information is not restricted by Articles 1

and 2.

2. Any information received under paragraph 1by a Contracting Stateshall be treated as secret in the same manner as information obtained

under the domestic laws of that State and shall be disclosed only to

persons or authorities (including courts and administrative bodies)

concerned with the assessment or collection of, the enforcement or

prosecution in respect of, the determination of appeals in relation to the

taxes referred to in paragraph 1,or the oversight of the above. Suchpersons or authorities shall use the information only for such purposes.They may disclose the information in public court proceedings or in

judicial decisions.

3. In no case shall the provisions of paragraphs 1 and 2 be construed

so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;

(b) to supply information which is not obtainable under the laws

or in the normal course of the administration of that or of the

other Contracting State;


37/42

37

(c) to supply information which would disclose any trade,

business, industrial, commercial or professional secret or trade

process, or information the disclosure of which would be contrary

to public policy (ordre public).

4. If information is requested by a Contracting State in accordance

with this Article, the other Contracting State shall use its information

gathering measures to obtain the requested information, even though that

other State may not need such information for its own tax purposes. The

obligation contained in the preceding sentence is subject to the limitations

of paragraph 3 but in no case shall such limitations be construed to permit

a Contracting State to decline to supply information solely because it has

no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to

permit a Contracting State to decline to supply information solely because

the information is held by a bank, other financial institution, nominee or

person acting in an agency or a fiduciary capacity or because it relates to

ownership interests in a person.


38/42

38

Article 26

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR

POSTS

Nothing in this Convention shall affect the fiscal privileges of

members of diplomatic missions or consular posts under the general rules

of international law or under the provisions of special agreements.


39/42

39

Article 27

ENTRY INTO FORCE

This Convention shall enter into force after the date of receipt of the last

notification in writing through diplomatic channels by which one

Contracting State notifies the other that its internal legal requirements for

the entry into force of this Convention have been fulfilled and shall

thereupon have effect:

(a) in Ireland:

(i) as respects income tax and capital gains tax, for any yearof assessment beginning on or after the first day of January

in the calendar year next following the year in which this

Convention enters into force;

(ii) as respects corporation tax, for any financial year

beginning on or after the first day of January in the calendar

year next following the year in which this Convention enters

into force.

(b) in Malta:

in respect of taxes on income derived during any calendar

year or accounting period, as the case may be, beginning on

or after the first day of January immediately following the

date on which the Convention enters into force.


40/42

40

Article 28

TERMINATION

This Convention shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

Convention, through diplomatic channels, by giving notice of termination

in writing at least six months before the end of any calendar year

beginning after the expiration of a period of five years from the date of its

entry into force. In such event, the Convention shall cease to have effect:

(a) in Ireland:

(i) as respects income tax and capital gains tax, for any year

of assessment beginning on or after the first day of January

in the calendar year next following that in which the notice is

given;

(ii) as respects corporation tax, for any financial year

beginning on or after the first day of January in the calendaryear next following that in which the notice is given.

(b) in Malta:

in respect of taxes on income derived during any calendar

year or accounting period, as the case may be, beginning on

or after the first day of January immediately following the

date on which the notice is given.


41/42

41

IN WITNESS WHEREOF the undersigned, being duly authorised thereto

by their respective Governments, have signed this Convention.

DONE at Rome this 14th

day of November, 2008 in duplicate in the

English language.

For the Government of Ireland For the Government of Malta

Sean O'Huiginn Walter Balzan


42/42

42

PROTOCOL

At the time of signing of the Convention between the Government of

Ireland and the Government of Malta for the Avoidance of Double

Taxation and the Prevention of Fiscal Evasion with respect to taxes on

income, the undersigned have agreed that the following shall form an

integral part of the Convention:

With reference to Article 22(1)(b):

Malta tax payable shall mean the difference between the tax paid by the

company paying the dividend and the tax repaid in respect of the

distribution to the company which is a resident of Ireland.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto

by their respective Governments, have signed this Protocol.

DONE at Rome this 14th

day of November, 2008 in duplicate in theEnglish language.

For the Government of Ireland For the Government of Malta

Sean O'Huiginn Walter Balzan

dtc agreement between malta and ireland

Documents